Tuesday, July 31, 2012

Punishment for bank fraud, the Iranians get it right...

While our country is awash in one banking scandal after another, has anyone seen any real punishment for those involved?  Sure we see the street level fraudsters like the mortgage fraud pros we've talked about over the years get arrested and locked up, yet despite all the press releases and hoopla over these cases, we've yet to see a single high level banker or Wall Street insider get locked up over the trillions of dollars worth of fraud that's occurred over the last decade.  Case in point, after receiving billions of dollars of federal bailout money, the folks over at JP Morgan Chase lose upwards of 5 billion dollars in some wacky derivative trades, the money is gone just like that, POOF!  Who's left to answer for it?  No one, all we get is condescending remarks from the banks CEO Jamie Dimon.  Or worse, how about the Libor scandal from London that's cost borrowers untold billions of dollars?  What kind of punishment have we seen for those involved?  Almost nothing.

Over the last couple of years we've heard of a banking scandal in Iran where the folks involved stole a couple of billion dollars from the government banks, check out the consequences for those involved...

(Reuters) - An Iranian court has sentenced four people to death for their roles in a billion-dollar banking fraud scandal that forced bank executives out of their jobs and tainted the government of President Mahmoud Ahmadinejad, state media reported on Monday.
The embezzlement case, discovered in September 2011, revolved around forged documents allegedly used by the directors of an Iranian investment company to secure loans totaling $2.6 billion to buy state-owned enterprises.
Thirty-nine people were tried for their involvement in the fraud.
"We are typing their sentences now and according to the sentence that was issued, four of the accused in this case were sentenced to death," judiciary spokesman Gholam-Hossein Mohseni-Ejei told the IRNA state news agency.
He did not name the individuals sentenced to death.
Two others were sentenced to life imprisonment and others received sentences ranging from 25 years and down, Mohseni-Ejei was quoted as saying.

DAMN!  That's the way you deal with these MF's!  Send them to jail for life or hang them!  How's that for a deterrent for the next financial fraudster who thinks he can steal other peoples money?  You think the prospect of being hung would wipe the smile off of JP Morgan Chase's CEO Jamie Dimon?

I think so!  It's a shame that we have to look to a backwards third world country to see what the appropriate punishment is for the bankers whose shell games have brought our economy to it's knees.  The sad part is that I honestly believe that until we impose harsher punishments for these crooks, nothings going to change...

1 comment:

  1. Capital punishment if enforceable against citizens must also be enforceable for elected government and public officials convicted of corruption and gross misuse of public good for personal gain since such directly influence the essence of citizens' lives collectively and individually, otherwise government sanctioned capital punishment must be abolished entirely.